A credit card for children can be a great way to help build credit history. The process is simple. Just add your child as an authorized user online, and the company will ship the new card. A great reason to apply for a credit card to your child is the increasing popularity of credit cards. In fact, a recent study by T.RowePrice found that 17% of parents with children aged eight to 14 owned a credit card.
Greenlight
Greenlight credit cards are the best option for parents searching for a credit line for their children. The green card offers zero card purchase fees, zero ATM fees, and zero foreign transaction fees, among other benefits. The card also includes features such as contactless payments and allowance tracking. It charges a $4.99 monthly service fee. It helps children develop financial responsibility by attaching chores to allowances and rewards. Children can use it to check chores off and get instant notifications when they are complete.
Parents can load money on their child's Greenlight card manually, or they can set up recurring transfers. The card can then automatically receive weekly allowances. Additionally, parents can set up parent-paid interest for their child's account.
GoHenry
The GoHenry kids credit card is designed with financial education and simplicity in mind. It includes a customizable debit account and an app that allows children to set savings goals, manage their spending, and more. The app is FDIC-insured and parents can monitor their children's spending. Parents can also view their child's spending history and track spending trends in real time.
The GoHenry credit card for teens and the GoHenry card for kids have tools that teach children financial responsibility. The app offers a number of tools to help kids manage their finances, such as colorful budgeting tools and chore trackers that add money on the card for household chores. This gives parents a great way to track their child's spending habits and encourage financial responsibility.
Apple card for iPhone
Apple's new credit-card for kids is a great tool to introduce children credit. This card offers a variety of features, including spending limits and the ability to set up a budget for your children. This card is educational and allows children to share it with older siblings.
Parents can also create family sharing groups to track spending and set spending limits. Parents can invite as many as five people to use their card together and build credit. Each user must at least be 13 years old, and they must agree to take responsibility for their spending. The activity is shared with credit bureaus and both owners are responsible to pay.
Secured credit cards
Although secured credit cards can be a great way to build credit history for your child, there are some things that you need to remember before you allow them to use one. Secured credit cards are costly and come with high interest rates. Additionally, transactions above a certain limit will result in a fee. The downside to a secured account is the inability to transfer funds between cards. A better option is a card that allows you to set a spending limit and change it whenever you want. Do not allow your child's card to exceed its limit. Then, he or she will find out that they cannot repay it.
Secured credit cards can be used to teach children how to manage their money and avoid over-limit charges. They are also useful in helping children to build their credit history. It is a good idea that they start young to help avoid major credit card mistakes later.